| DEPARTMENT | PROJECT COST |
|---|---|
| Investment Department | PKR 16,000 Million |
The GoS has proposed the setting up of an industrial zone (to be declared Special Economic Zone - SEZ) in Sindh at the Dhabeji, Thatta, Sindh comprising of fifteen hundred and thirty (1,530) acres of land. The Dhabeji Special Economic Zone was approved in the 6th Joint Cooperation Committee (JCC) under the Industrial Cooperation Phase of China Pakistan Economic Corridor (CPEC).
Government of Sindh decided to execute the project through International Competitive Bidding Process for investor solicitation under Public Private Partnership (PPP) mode with the approval of PPP Policy Board in its 26th meeting, held on 10 October 2018, under the chairmanship of Honorable Chief Minister Sindh. Subsequently, the PPP Policy Board in its 27th meeting, held on 13 December 2018, entrusted the project to Sindh Economic Zones Management Company (SEZMC) as the executing agency for the Project on behalf of Government of Sindh. Transaction Advisory Consortium (TAS) comprises EY Ford Rhodes (Lead Advisor - financial consultants), EA Consulting (Technical Advisors) and RIAA Law (Legal Advisors) hired through a competitive bidding process.
The Dhabeji SEZ is located at Dhabeji, Thatta (Sindh) 50 km from Karachi, via the Eastern alignment of CPEC (N-5) and M-9. The area of the Project Site allocated by Client/GoS is approximately 1530 acres. The Project Site for the Dhabeji Industrial Zone is situated close to Bin Qasim port but can also be served by Karachi port.
The Project is proposed to be implemented in two (2) phases:
Phase-I: 750 acres
Phase-II: 780 acres
The Developer shall:
• Prepare detailed master plan and carry out detailed design.
• Develop internal infrastructure and related facilities for the Project.
• Carry out O&M of the zone infrastructure and facilities.
Total Concession term for the Project is 20 years of which 5 years are for construction of the zone and remaining 15 years are for the O&M.
Revenue Model: The project is structured on revenue model. The Developer will be entitled to and shall be responsible to collect revenues through sub-leasing of the plots to zone enterprises in accordance with the PPP Agreement.
GoS to enter into a master lease agreement for 50 years with the Developer / SPV to lease land for phase 1, and an agreement to lease land for phase 2 upon completion of milestones.
Developer will collect revenues through sub-leasing of the plots to zone enterprises and through O&M and other value-added services. Developer to share a percentage of revenue, from sale proceeds.
The Project shall be financed by a combination of customer advances, Developer’s equity / commercial Loan
The GoS shall not provide any financial support or financial/sub-sovereign guarantees. Additionally, the GoS shall not be responsible for providing any collateral in order to achieve financial close. Financial close will be the responsibility of the Developer.
The project construction works commenced in July 2023, after satisfaction of all condition precedents in accordance with the Concession Agreement. The master lease agreement is expected to be executed in the month of April 2024 and commencement of plot sale is expected by May/June 2024.
29-Aug-2019
